BANK LOAN
Banks are the back bone of Indian economy. First of all, Banks are not only meant for common purposes of depositing or withdrawal of money. Of Course, You can get a Bank Loan to enhance your life. Find the Best Consultants to get a Bank Loan at a very Low interest and charges. In other words, the banks also serve other purposes useful to a individuals and business alike offering the following.
- Bank Loans
- Discounting of Bills
- Deal with Foreign exchange
- other important Financial Services
Banks are the champions and pillars of support for business industry. In the current Indian business economy, after demonetization, there can be no business without a bank account. By the way, Having a separate bank account for your business boosts the business image. Having a bank account, be it savings or current account, will be useful to get Bank loan when you have need for funds in future for varied purposes.
What is Bank Loan ?
Banks offer funds for various financial needs of a person or a business organization at an interest for a fixed period of time against leverage. Sometimes the banks may not require collateral or leverage for certain types of loans.
Availing a bank loan is simple and easy. The Banks follow a systematic procedure for approval of loans.
Thus, Bank Loan approval depends of factors like credit score, Loan amount, repayment tenure,
interest rate and other market factors
What are the Benefits Of Bank Loan ?
One must know all the benefits of Bank Loan who are in need of funds.
Lower rate of interest than Private Lenders :
Banks offer lower rate of interest when compared to Private lender
Safe and secured way of getting funds :
The Security /Collateral / Leverage you pledge against fund is safe and secured with banks
Governed by RBI :
All banks in India come under the governance of Reserve Bank of India. RBI is the central bank or apex bank that decides about interest rates of lending, banking rules and regulations and holds important powers of entire banking system in India.
Standard practices :
Banks follow standard banking practices laid down by RBI and banking laws in allocation and approval of loan application. On the other hand, They have a set of procedure in recovery of loan too. Hence you need not worry about harsh recovery practices when taking funds from renowned banks.
Legal borrowings :
When you require funds for legal and genuine purposes then seeking bank loan from renowned banks is a good idea
Simple and Easy Borrowing :
With computerization and digitalization of banks there is no need to run from pillar to post and from one bank to another for Borrowing Money. All you have to do is submit basic documents and details required for your loan from the comfort of your home and office. Your Lended amount will be directly transferred into your bank account in case you are Pre-approved customer of your bank.
Flexibility & Fees :
Sometimes you many need additional amount in and above the amount borrowed. In other cases you may want to repay before tenure or you may want to shift over to other bank for lower interest rate. Renowned Banks can accommodate the same at a small fee
Tax Benefits:
Few types of loans like education loan, home loan have income tax benefits. Hence it is wise to borrow bank loan when buying properties or for education purposes.
What are the Disadvantages Of Bank Loan ?
Collateral or security against Loan:
Few types of bank loan are approved only against collateral of asset or against guarantee. When a borrower does not have such collateral asset or guarantor, availing a bank loan becomes difficult
Seizure of asset:
The borrowers face the risk of seizure of asset when they continuously fail to repay monthly installments as agreed. This is a serious disadvantage to the defaulting borrowers who miss out a couple of installments in between.
Penalties and Late fees:
some banks charge penalties and late fees for Pre-closure or extension of lending the funds and late payment of EMIs. This is additional cost to the borrower over and above the EMI.
Credit score:
Renowned banks always consider credit score of the borrower to assess his credit worthiness. Those who are applying for first time with no credit history will face serious problems
Higher interest for no Collateral-Loans:
Banks interest rates are much higher when loans are approved without any asset security or guarantee from a guarantor.
Types of Bank Loans
- Business Loans
- Personal Loans
- Housing Loans
- Travel Loans
- Education Loans
- Mortgage Loans
- Property Loans
- Gold Loans
- Credit Card Based Loans
Business Loan
Business organizations need funds for various purposes like purchase of assets, working capital needs to meet day to day finance needs etc. Under such scenario taking a business loan is a wise business decision.
Business loan helps an organization to expand and grow. Hence, They are usually unsecured Loans that do not require collateral security. Above all, You can avail Business loans for all kinds of business organizations like companies, LLPs, Sole proprietors, partnership firms etc. These are all purely for your business needs. Business loans have minimal documentation
Personal Loan
Personal loans are funds borrowed by individuals for various personal purposes like medical emergencies, unplanned travel etc. In Fact, Personal loans do not require any collateral and you can use the funds as you wish.
Personal loan though come with high interest rates, gets processed quickly and easily with minimal paper work. Personal loans are usually in short tenure repayments. In conclusion, Promoters who need to borrow money to start a business can go for personal loans.
Housing Loan
Banks offer lending of funds towards purchase of houses, plots, apartments, buildings etc. Housing loans are long term terms that needs to be repaid by the borrower in agreed EMIs with interest for agreed tenure. So that, The property you buy becomes the collateral here. The interest rates are lower when compared to personal loans. The borrower of housing loan has income tax benefits for both the principle and interest amount repaid by him. Hence it is smart for a taxpayer to buy a property through housing loan
Travel Loan
Banks offer Funds for travel purposes too. Travel loans are available for air tickets, accommodation, and tours. In addition, Some banks even allow travel accessories and insurance too. Hence you can borrow travel loans when you want to go for vacation abroad with family, honeymoon, religious trip or any other emergency travel requirements. Travel loans do not require collateral and can be processed quickly too for this purpose
Education Loan
Requirement of funds should not be a hindrance to get your dream degree in education. Banks offer funds for the purpose of education in India and abroad too. To Explain, Students who aspire to study in India or abroad can go for education loan to finance their studies. Likewise, The repayment of Money starts only after the graduation. Some banks may need collateral or guarantee for education loans at any rate. Education loan come with tax benefits on principle and interest repayment certainly.
For more information and details, Please contact our Bank Loan Advisors!
